BXMT - Famed Short Seller Carson Block Flags 'Cover Your A**' Situation As Muddy Waters Bets Against Blackstone Mortgage Trust | Benzinga
Muddy Waters Research is out with a new short position that founder Carson Block discussed Wednesday in an interview on CNBC's "The Exchange."
What Happened: Muddy Waters put out a new short report on Blackstone Mortgage Trust Inc (NASDAQ: BXMT) titled, "Here Comes the Cliff."
Starting in 2024, an estimated $16 billion of interest rate swaps are expected to terminate, according to Muddy Waters.
As a result, the firm anticipates that Blackstone Mortgage will have to significantly cut its dividend and will be exposed to a potential liquidity crisis as large numbers of borrowers will likely be unable to refinance or repay.
"Even assuming rate cuts, BXMT’s losses on its $23.2 billion net book value of loans could reach ~$2.5 billion to ~$4.5 billion. BXMT’s market cap, ...